A recent survey conducted by the British Retail Consortium has revealed that consumer confidence in the UK has been negatively impacted by fears over the upcoming budget and the government’s warnings of potential tax rises. The survey found that households’ assessment of the general economic situation over the next three months has significantly decreased in September. Older generations, in particular, have experienced a decline in confidence, possibly due to cuts to winter fuel payments for pensioners.
Despite the decrease in consumer confidence, expectations for future retail spending remain negative, with many consumers planning to reduce the amount they save instead. The survey also showed a worsening personal financial situation and state of the economy, while personal spending on retail improved slightly. Additionally, the survey indicated a decrease in personal saving.
This decline in consumer optimism comes on the heels of another survey by market research group GfK, which reported that consumer confidence in the UK has fallen to its lowest level since March. These findings point to growing concerns over the government’s plans for a potentially “painful” budget in October.
The survey results have raised concerns about the impact on retail spending in the upcoming months, with sectors such as fashion, home and garden furniture, DIY, electronics, and dining out expected to be negatively affected. The overall economic outlook in the UK remains uncertain, with inflation, high energy prices, and lack of investment posing further challenges to economic growth.
Source
Photo credit www.theguardian.com